Penn Virginia Corporation Announces Second Quarter 2010 Results

Penn Virginia Corporation (NYSE: PVA) today reported financial and
operational results for the three months ended June 30, 2010 and
provided an update of full-year 2010 guidance.

Second Quarter 2010 Highlights

Second quarter 2010 results, with comparisons to second quarter 2009
results, included the following:

• 
  Quarterly oil and gas production of 10.5 billion cubic feet of natural
  gas equivalent (Bcfe), or 115.1  million cubic feet of natural gas
  equivalent (MMcfe) per day, as compared to 12.3 Bcfe, or 134.7 MMcfe
  per day, pro forma to exclude production from Gulf Coast assets sold
  in January 2010;
  
• 
  Operating loss of $20.9  million, as compared to a loss of $37.6
  million;
  
• 
  Net income attributable to PVA of $31.1 million, or $0.68 per diluted
  share, which included a pretax gain on the sale of Penn Virginia GP
  Holdings, L.P. (NYSE: PVG) of $84.7 million ($49.6 million, or $1.08
  per diluted share, after tax), as compared to a loss of $22.2  million,
  or $0.52 per diluted share;
  
• 
  Net loss from continuing operations of $21.1 million, or $0.46 per
  diluted share, as compared to a loss of $26.2  million, or $0.61 per
  diluted share; and
  
• 
  Adjusted net loss attributable to PVA, a non-GAAP measure which
  excluded the effects of the gain on sale of discontinued operations,
  non-cash change in derivatives fair value, impairments, drilling rig
  standby charges, restructuring costs, and gains or losses that affect
  comparability to the prior year period, of $9.4 million, or $0.21 per
  diluted share, as compared to a loss of $7.1 million, or $0.17 per
  diluted share.
  

The operating loss, net loss from continuing operations and net income
attributable to PVA in the second quarter of 2010, as reported above,
include restructuring costs of $4.2 million related to the divestiture
of PVA′s remaining interests in PVG.

Reconciliations of non-GAAP financial measures to GAAP-based measures
appear in the financial tables later in this release.

Management Comment

A. James Dearlove, President and CEO said, 'Penn Virginia completed the
transition to a 'pure play? exploration and production (E&P) company in
June, when we sold our remaining interests in PVG. We are redeploying a
portion of the PVG sale proceeds to accelerate growth in our near-term
production in the oil and liquids rich Granite Wash and horizontal
Cotton Valley plays. We are also adding acreage to our core holdings in
the Granite Wash and Marcellus Shale plays. Penn Virginia is in a
position to make these investments, while maintaining our financial
flexibility, as a result of having raised over $825 million of capital
since May 2009 through the issuances of debt and equity securities as
well as the sales of non-core assets.

'Specifically, of the $70 million increase in the midpoint of 2010
capital expenditures guidance, approximately $30 million will be for
drilling additional Granite Wash and horizontal Cotton Valley wells,
which should benefit our production beginning in the fourth quarter of
2010. The remaining $40  million of the capital expenditures increase
will be dedicated primarily to expanding our Granite Wash and Marcellus
Shale land positions, including previously announced Marcellus Shale
leasehold acquisitions, and infrastructure.

'Compared to the prior year quarter, we experienced a decline in oil and
gas production resulting primarily from our decision to suspend drilling
in the latter part of 2009. Sequentially, our quarterly production was
up only slightly as we continued to experience equipment-related delays
in well completions in East Texas and the Granite Wash during the early
part of the second quarter of 2010. The delays led to an approximate
0.7  Bcfe shortfall in production compared to our expectations for the
second quarter. However, primarily as a result of strong well results
from these two areas, in June we experienced our fourth best month of
pro forma production (133.0 MMcfe per day) and have increased production
guidance in the second half of 2010 to levels significantly higher than
the first half results.

'For the second half of 2010, we have hedged approximately 50 percent of
the midpoint of our estimated natural gas production, at weighted
average floor and ceiling prices of $5.70 and $7.85 per MMBtu.?

Second Quarter 2010 Financial and Operational Results

Production in the second quarter of 2010 was approximately 10.5 Bcfe, or
115.1 MMcfe per day, 15  percent less than the pro forma 12.3 Bcfe, or
134.7 MMcfe per day, in the second quarter of 2009 and five percent more
than the pro forma 10.0 Bcfe, or 111.6 MMcfe per day, in the first
quarter of 2010. The year-over-year decrease in was due to natural
production declines, the effects of significantly reduced drilling
activity in late 2009 and, to a lesser extent, by well completion delays
due to difficulty in obtaining stimulation equipment in East Texas and
in the Granite Wash. See our separate operational update news release
dated August 4, 2010 for a more detailed discussion of operations.

Our realized natural gas price, prior to the impact of derivatives,
during the second quarter of 2010 was $4.25 per thousand cubic feet
(Mcf), 22 percent higher than the $3.49 per Mcf price in the second
quarter of 2009, but 24 percent lower than the $5.60 per Mcf price in
the first quarter of 2010. Our realized oil price, prior to the impact
of derivatives, during the second quarter of 2010 was $73.58 per barrel,
34 percent higher than the $55.00 per barrel price in the second quarter
of 2009, but one percent lower than the $74.44  per barrel price in the
first quarter of 2010. Our realized natural gas liquids (NGLs) price
during the second quarter of 2010 was $35.03 per barrel, 13 percent
higher than the $30.97 per barrel price in the second quarter of 2009,
but 22 percent lower than the $44.64 per barrel price in the first
quarter of 2010. Adjusting for oil and gas hedges, our effective natural
gas price during the second quarter of 2010 was $5.24 per Mcf and our
effective oil price was $71.89 per barrel, or an increase of $0.99 per
Mcf and decrease of $1.69 per barrel, respectively, over the realized
prices.

The operating loss of $20.9 million was a $16.7 million improvement over
the operating loss of $37.6  million in the prior year quarter. The
decrease in operating loss was due to a 21 percent increase in the
realized gas equivalent commodity price, from $4.13 to $5.00 per Mcfe,
and a $6.4 million decrease in other operating expenses, which include
impairments, drilling rig standby charges, restructuring costs and loss
on the sale of assets, partially offset by the effects of the production
decrease.

As discussed below, second quarter 2010 direct operating expenses
increased $1.8 million, or six percent, to $29.7 million as compared to
$27.9 million in the second quarter of 2009.

• 
  Lease operating expenses decreased by $2.3 million, or 20 percent, to
  $9.2 million, or $0.87  per Mcfe produced, from $11.4 million, or $0.84
  per Mcfe produced, resulting primarily from the production decrease;
  
• 
  Gathering, processing and transportation expenses decreased by $0.1
  million, or three percent, to $3.3 million, or $0.32 per Mcfe
  produced, from $3.4 million, or $0.25 per Mcfe produced, resulting
  primarily from the production decrease;
  
• 
  Production and ad valorem taxes decreased by $0.2 million, or seven
  percent, to $3.1  million, or 5.9 percent of total oil and gas
  revenues, from $3.3  million, or 6.0  percent of total oil and gas
  revenues, due to the revenue decrease; and
  

• 
  General and administrative expense increased by $4.4 million to $14.2
  million from $9.8  million, resulting primarily from $4.2 million of
  restructuring costs related to the divestiture of PVG.
  

Exploration expense decreased 45  percent to $9.5  million in the second
quarter of 2010, as compared to $17.5  million in the prior year quarter,
due primarily to $6.7 million of drilling rig standby charges in the
prior year quarter.

Depreciation, depletion and amortization expenses decreased by $8.8
million, or 22 percent, to $32.1  million, or $3.06 per Mcfe, in the
second quarter of 2010 from $40.9 million, or $3.02 per Mcfe, in the
prior year quarter, as a result of the production decrease.

Full-Year 2010 Guidance Update

Full-year 2010 guidance highlights are as follows:

• 
  Full-year 2010 production guidance of 47.0 to 50.0 Bcfe, which remains
  unchanged as compared to previous guidance despite the second quarter
  production shortfall;
  
• 
  Increased third quarter production guidance to a range of 12.2 to 13.5
  Bcfe, from a previous guidance range of 12.0 to 13.2 Bcfe;
  
• 
  Increased fourth quarter production guidance to a range of 14.0 to
  15.7  Bcfe, from a previous guidance range of 14.0 to 15.0 Bcfe;
  
• 
  For the second half of 2010, the production guidance range of 26.2 to
  29.2 Bcfe, or 142.3 to 158.6  MMcfe per day, is 24 to 38 percent higher
  than the 20.8 Bcfe, or 115.0 MMcfe per day, of first half reported
  production; and
  
• 
  Increased oil and gas capital expenditures guidance to a range of $450
  to $490 million from a range of $375 to $425 million of previous
  guidance, reflecting up to approximately $30 million of additional
  non-operated drilling in the Granite Wash and operated drilling in the
  horizontal Cotton Valley, as well as up to approximately $40 million
  of additional land acquisition, facilities and seismic, primarily in
  the Granite Wash and Marcellus Shale plays.
  

Our currently anticipated oil and gas capital expenditures for 2010
include $325 to $350 million for drilling and completion activity, and
$100 to $110 million for land acquisition. The drilling capital
expenditures include:

• 
  approximately 65 percent for the oil and liquids rich Granite Wash and
  horizontal Cotton Valley; and
  
• 
  approximately 20 percent for drilling in the Haynesville and Marcellus
  Shales.
  

The land acquisition expenditures include:

• 
  approximately 60 percent for the Marcellus Shale; and
  
• 
  approximately 25 percent for the Granite Wash.
  

See the Guidance Table included in this release for guidance estimates
for full-year 2010. These estimates, including capital expenditure
plans, are meant to provide guidance only and are subject to revision as
our operating environment changes.

Capital Resources and Liquidity, Interest Expense and Impact of
Derivatives

As of June 30, 2010, we had outstanding borrowings of $530.0 million
($502.5 million carrying value), consisting of $300 million ($292.2
million carrying value) of senior unsecured notes due 2016 and
$230.0  million ($210.3  million carrying value) of convertible senior
subordinated notes due 2012, with no borrowings against our revolving
credit facility. Net of cash and equivalents of $327.3 million, our net
indebtedness at June 30, 2010 was $175.2 million.

Currently, we have approximately $735 million of financial liquidity,
excluding cash flows from operating activities, comprised of cash on
hand ($315 million), committed availability under our revolving credit
facility ($300 million) and an additional $120 million of borrowing base
availability. Together with ongoing cash flows from operating
activities, supplemented by natural gas and crude oil hedges, we expect
this financial liquidity to be sufficient to fund our anticipated
capital needs for the remainder of 2010 and 2011.

Consolidated interest expense increased to $13.3  million in the second
quarter of 2010 from $8.7  million in the second quarter of 2009. The
increase was due primarily to a $3.5 million increase in cash interest
expense from $7.1 million in the prior year quarter to $10.6 million in
the second quarter of 2010. The cash interest expense increased due to a
higher interest rate on the senior unsecured notes we issued in June
2009, partially offset by lower outstanding balances on our revolving
credit facility. Other non-cash components of interest expense increased
by $1.1 million, from $1.6 million in the prior year quarter to
$2.7  million in the second quarter of 2010, due primarily to increases
in amortization of debt issuance costs and losses on interest rate
derivatives.

Due to fluctuations in commodity prices during the second quarter of
2010, derivatives expense was $0.6  million in the second quarter of 2010
as compared to derivatives income of $2.8 million in the prior year
quarter. Second quarter 2010 cash settlements of our derivatives
resulted in net cash receipts of $9.1  million, as compared to $15.7
million of net cash receipts in the prior year quarter.

Second Quarter 2010 Financial and Operational Results Conference Call

A conference call and webcast, during which management will discuss
second quarter 2010 financial and operational results, is scheduled for
Thursday, August 5, 2010 at 3:00 p.m. ET. Prepared remarks by A. James
Dearlove, President and Chief Executive Officer, will be followed by a
question and answer period. Investors and analysts may participate via
phone by dialing 1-866-630-9986 five to ten minutes before the scheduled
start of the conference call (use the passcode 4650813), or via webcast
by logging on to our website, www.pennvirginia.com,
at least 15 minutes prior to the scheduled start of the call to download
and install any necessary audio software. A telephonic replay will be
available for two weeks beginning approximately 24 hours after the call.
The replay can be accessed by dialing toll free 888-203-1112
(international: 719-457-0820) and using the replay code 4650813. In
addition, an on-demand replay of the webcast will also be available for
two weeks at our website beginning approximately 24 hours after the
webcast.

Penn Virginia Corporation (NYSE: PVA) is an independent natural gas
and oil company focused on the exploration, acquisition, development and
production of reserves in onshore regions of the U.S., including East
Texas, the Mid-Continent region, the Appalachian Basin and Mississippi.

For more information, please visit our website at www.pennvirginia.com.

Certain statements contained herein that are not descriptions of
historical facts are 'forward-looking? statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. Because such
statements include risks, uncertainties and contingencies, actual
results may differ materially from those expressed or implied by such
forward-looking statements. These risks, uncertainties and contingencies
include, but are not limited to, the following: the volatility of
commodity prices for natural gas, natural gas liquids, or NGLs, and
crude oil; our ability to access external sources of capital;
uncertainties relating to the occurrence and success of capital-raising
transactions, including securities offerings and asset sales; reductions
in the borrowing base under our revolving credit facility; our ability
to develop and replace oil and gas reserves and the price for which such
reserves can be acquired; any impairment write-downs of our reserves or
assets; reductions in our anticipated capital expenditures; the
relationship between natural gas, NGL and crude oil; the projected
demand for and supply of natural gas, NGLs and crude oil; the
availability and costs of required drilling rigs, production equipment
and materials; our ability to obtain adequate pipeline transportation
capacity for our oil and gas production; competition among producers in
the oil and natural gas industry generally; the extent to which the
amount and quality of actual production of our oil and natural gas
differ from estimated proved oil and gas reserves; operating risks,
including unanticipated geological problems, incidental to our business;
the occurrence of unusual weather or operating conditions including
force majeure events; delays in anticipated start-up dates of our oil
and natural gas production; environmental risks affecting the drilling
and producing of oil and gas wells; the timing of receipt of necessary
governmental permits by us; hedging results; accidents; changes in
governmental regulation or enforcement practices, especially with
respect to environmental, health and safety matters; risks and
uncertainties relating to general domestic and international economic
(including inflation, interest rates and financial and credit markets)
and political conditions (including the impact of potential terrorist
attacks); and other risks set forth in our Annual Report on Form 10-K
for the fiscal year ended December 31, 2009.

Additional information concerning these and other factors can be found
in our press releases and public periodic filings with the SEC,
including our Annual Report on Form 10-K for the year ended December 31,
2009. Many of the factors that will determine our future results are
beyond the ability of management to control or predict. Readers should
not place undue reliance on forward-looking statements, which reflect
management′s views only as of the date hereof. We undertake no
obligation to revise or update any forward-looking statements, or to
make any other forward-looking statements, whether as a result of new
information, future events or otherwise.

Penn Virginia Corporation

James W. Dean

Vice President,
Corporate Development

610-687-7531

Fax: 610-687-3688

invest@pennvirginia.com